The Fibonacci sequence is one of the most famous formulas in mathematics. Each number of the sequence is the sum of the two numbers that precede it. So the sequence goes 0, 1, 1, 2, 3, 5, 8, 13, 21, 34 for infinity. It’s been called “nature’s secret code”, and “nature’s universal rule”.
Just take a look at the picture above and the pattern it creates. You can instantly recognize how this sequence works in nature as an underlying universal grid. A perfect example of this is the Nautilus shell, whose chambers adhere to the Fibonacci sequence’s logarithmic spiral almost perfectly. This famous pattern shows up almost everywhere in nature including flowers, pinecones, hurricanes, and even huge spiral galaxies in space. (Jonathan Cleveland Sept. 20, 2020)
The Fibonacci sequence can be applied to nature, to design, and to the stock market, as we have read about how cryptocurrencies use technical analysis that follows the Fibonacci ratios.
What is the key to the Fibonacci ratio of:
(a) 61.8% ratio is found by dividing one number in the series by the number that follows it. For example. 21 divided by 34 equals 0.6176, and 55 divided by 8 equals about 0.61798.
(b) the 38.2 % ratio is discovered by dividing a number in the series by the number located two spots to the right. For instance, 55 divided by 144 equals approximately 0.38194.
(c) the 23.6% ratio is divided by dividing a number in the series by the number located three spaced to the right. For example, 8 divided by 34 equals about 0.23529.
Each term in this sequence is simply the sum of the two preceding terms, and the sequence continues infinitely. One of the remarkable characteristics of this numerical sequence is that each number is approximately 1.618 times greater than the preceding number. This common relationship between each number in the series is the foundation of the ratios used by technical traders to determine retracement levels.
Learning about new things keeps your mind sharp, your conversation interesting plus builds a happier character so pull out your calculator, pen, and paper and learn how nature, the stock market, and the world around us use this all-knowing formula. It contains beauty and knowledge.
Thanks for reading.
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